An often repeated joke in bankruptcy involves a debtor who gives up his home but not his car. The punch line by the trustee is, “So you are giving up your house and moving into your car?” But this joke became reality in the case of In Re Tular decided in New York two months ago. Debtor was an independent trucker. He bought his Peterbilt truck in 2005. The truck was equipped with a bed, lavatory and electricity. Debtor told the court that all his possessions, except a 1997 Ford pickup truck and money in the bank, were in the truck. He further testified that he gave up his apartment and moved into the sleeper compartment of his Peterbilt truck.

Federal law prohibited debtor from driving more than 11 hours per day to a maximum of 70 hours per week. Debtor said he typically drove 50 to 60 hours per week and spent 360 days per year on the road. Debtor filed for bankruptcy protection about 10 months after moving into the Peterbilt. He maintained a post office box in Corfu, N.Y., which is where he lived before moving into his truck. His driver’s license and truck registration listed only his post office address. Debtor testified that he had $24,000 in equity in the Peterbilt. He argued that the truck was protected as a ‘mobile home’ under New York’s homestead exemption. The trustee objected because he wanted to get the truck and sell it for the benefit of creditors. Don’t hate the trustee because that’s what trustees do. Trustees represent the collective interest of all creditors in the case. It is his job to get whatever non-exempt assets he can get his hands on, sell them and give the cash proceeds to creditors. The trustee is not the judge in the case. If there is a dispute between debtor and trustee, the disputed matter is presented to the judge who has the power to render judgment on the disputed matter.

《楊清泉律師專欄》CAN TRUCK QUALIFY AS HOMESTEAD IF YOU LIVE IN IT?(PART II)